I think Peer-to-Peer Lending with Real-world Collateral is what I want to see. Using real-world assets as collateral reduces risk for lenders, enhances trust through automated smart contracts, and makes financial services more accessible
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I think this is an amazing application we are yet to see. The general model of lending in defi is the type where collaterals are still provided in crypto. I think if we can have a way to arrange the logistics and be able to use physical valuable assets for collateral. Maybe this would have the limitations of location. But impossible is nothing anyway.
Using the real world or our physical valuable asset for lending either crypto or just fiat collateral is not a good enough business decision , when involving internet and actual distance.
That might get depending on total lending amount.